•Fiat money gives governments the ability to become more authoritarian through welfare/warfare states and surveillance/police states.
•Central banking allows governments to circumvent the usual trade-offs of sound money by running deficits on their budget with minimal consequence.
•The power of fiat money has created an unprecedented destructive power in governments over the last 100 years, leading to tyrannies and oppressive regimes.

Fiat Money and Government Authority

Fiat money is a type of currency that is created and backed by government order, rather than commodity or gold reserves. It gives governments the ability to control economic activity through central banking, allowing them to spend without constraint beyond what would be possible under sound money. This has resulted in an increase in government authority and power over the last century, leading to oppressive regimes and tyrannies around the world.

Individual-Level Incentives

At the individual level, fiat money has resulted in higher time preferences due to ubiquitous debt and lack of savings vehicles. This encourages people to live for today rather than plan for tomorrow, which can have devastating consequences for their long-term financial health.

Company-Level Incentives

At the company level, fiat money has encouraged larger companies that replace families as sources of communal support and economic stability. These artificial structures create zombie-like societies where individuals are unable to reach their highest potentials without relying on corporate entities.

Nation State Level Incentives

At the nation state level, fiat money has given rise to authoritarian regimes through welfare/warfare states and surveillance/police states. The unchecked power of these governments has led to untold destruction over the last century as they use their monetary powers for ill purposes such as oppression and tyranny on an unprecedented scale.

Conclusion

The incentives created by fiat money have had a profound effect on our lives at all levels – from individuals up through nation-states – resulting in higher time preferences, artificial communal structures and oppressive regimes around the world. It is essential that we understand these incentives if we are ever going to move towards a better future with sounder monetary policies that will benefit us all instead of just those in power